There are several different kinds of bankruptcies, and Chapter 15 is only one of the many which are available. This is the function of bankruptcy when it comes to different countries. The reason that the United States decided to add this part to the Bankruptcy Code is that a lot of the time, what happens in one country regarding bankruptcy is often tied to either assets or information that can be found in many other countries. When there are many different countries, and therefore multiple jurisdictions involved, things can sometimes get confusing. Chapter 15 can help to straighten these things out in such a way so that everyone knows where the money is and where it should go.
Chapter 15 will basically allow the US government and the bankruptcy courts to be able to get information about a company’s assets or a country’s assets. This is a good option for companies that try to keep some of their assets in another country so that they will be more easily able to file for bankruptcy. What this does is that it makes the proceedings for bankruptcy go on much more smoothly and take up much less time and money than if there was no such thing as Chapter 15 in order to protect the assets of a company in general.
Chapter 15 is able to set up a cooperation between the United States Courts and the foreign courts and representatives so that they can all take care of the interest of the person filing for bankruptcy together without having to deal with all of the red tape that goes along with filing for bankruptcy when several of the assets are located somewhere overseas.
It is always a matter of discretion when it comes to whether or not the US courts will extend the assistance needed to the countries or companies in question. Most of the time, the US courts will have to take into consideration how the different jurisdictions relate to the matter at hand and what kind of action should be taken to get the bankruptcy done with as little trouble and drama as possible.
Don’t forget that this is something that has been set up so that in general the process of gaining a bankruptcy and getting to take care of the assets that are overseas are easier to take care of. Most of the time, this can be used in conjunction with the other filings of bankruptcy, because it is something that can be very useful to many of the individuals or companies that decide to file for bankruptcy.
Elliott Dawson is a contributing editor at DebtFinanceArticles.com. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.